Church Finance Committee Report

To the First Presidency of The Church of Jesus Christ of Latter-day Saints:

03070_000_009

We have reviewed the annual financial report of the Church for the fiscal year ended August 31, 1975, which includes operations involving the general funds of the Church and funds of other controlled organizations, the accounts of which are maintained by the Financial Department of the Church. We have also examined the budgeting, accounting, and auditing procedures employed and the manner in which funds received and expenditures are controlled. We have determined the expenditures of general Church funds were authorized by the First Presidency and by budgetary procedures and that the budget is authorized by the Council on Disposition of the Tithes comprised of the First Presidency, the Council of the Twelve, and the Presiding Bishopric. The Committee on Expenditures, in weekly meetings, administers the expenditure of funds under the budget.

Modern accounting technology and equipment are employed by the Financial Department in keeping abreast of rapid Church expansion and changing methods of electronic data processing. Continuous attention is being given to the position of the Church under federal and various state statutes which subject churches to taxation on certain types of income.

The Auditing Department, which is independent of all other departments, conducts a regular program of auditing the organizations referred to above, including the missions, on a worldwide basis. The extent and scope of its operations in safeguarding the resources of the Church are increasing commensurate with the growth and widening activities of the Church. The audit of local funds of wards and stakes is assigned to stake-appointed auditors. Incorporated businesses owned or controlled by the Church, for which accounts are not maintained in the Financial Department, are audited by professional auditing firms or by governmental regulatory agencies.

Based on our review of the annual financial report of the Church and our study of the accounting and auditing methods by which financial operations are controlled, together with continuing discussions with personnel of the Financial and Auditing Departments, we are of the opinion that the general funds of the Church have been properly accounted for and expenditures of funds during the fiscal year ending August 31, 1975, were made in accordance with established procedures outlined herein.